The price of Sei (SEI) has seen a significant uptick as a result of the recent announcement by the Sei Foundation proposing an upgrade to V2. This proposed transition to the second version of the Sei blockchain has led to a notable 10% increase in the cryptocurrency's market value.

The upcoming upgrade, as outlined by the Sei Foundation, is set to introduce a high-performance, parallelized Ethereum Virtual Machine (EVM) to enhance the network's speed and compatibility with Ethereum-based contracts. This strategic move aims to bolster the blockchain's functionality and performance significantly.

Enhancing Sei Blockchain with V2 Upgrade

The proposed shift to Sei blockchain version 2 represents a pivotal advancement in the platform's evolution. Sei Labs has highlighted that the integration of a parallelized EVM in this upgrade will enable rapid transaction finality, enhancing user experience and operational efficiency within the network.

Pending approval through the governance process, the implementation of this upgrade is scheduled to take place within a week, specifically on May 27. The anticipated improvements are expected to elevate the blockchain's capabilities and broaden its compatibility with popular Ethereum-centric applications like Uniswap, Frax, and The Graph.

Furthermore, the Sei team underscores that this enhancement will position the blockchain as a formidable player in the high-performance network landscape alongside other parallelized EVMs such as Monad and Neon.

Seamless Integration with Ethereum Virtual Machine

In a previous announcement in November 2023, Sei Labs had revealed plans to integrate EVM support into the forthcoming Sei V2 upgrade. This integration is designed to streamline the migration of Ethereum-based contracts onto the Sei network, fostering enhanced interoperability and operational efficiency. By leveraging Geth, an Ethereum Virtual Machine Go implementation, Sei aims to bridge its existing smart contract framework based on CosmWasm technology with the advanced EVM functionalities seamlessly.

Moreover, the introduction of SeiDB, a specialized data structure tailored for the platform's storage layer, is set to combat state bloat and streamline the state synchronization process for new network nodes. These technological enhancements are poised to significantly elevate Sei's performance and scalability, paving the way for a more robust and efficient blockchain ecosystem.

Market Response to SEI Upgrade

The announcement of the V2 upgrade has elicited a positive response in Sei's market performance, with a notable 10% surge in its price post-announcement. This market reaction underscores the optimism surrounding the upgrade's potential to enhance the network's operational capabilities and attract further investor interest.

Simultaneously, SEI's market capitalization and 24-hour trading volume have experienced substantial growth, increasing by 8.84% and 122% respectively to $1,670,526,00 and $120,509,493. Currently, SEI is trading at $0.5705, reflecting an 8.46% increase from its daily low.